Gold surged to the highest level in more than six years as rising tensions in the Middle East stoked demand for haven assets. Palladiumalso extended gains to an all-time high.
Iran’s government said it would no longer abide by any limits on its enrichment of uranium following the killing of Iranian General Qassem Soleimani, while Iraq’s parliament voted to expel U.S. troops from the country. President Donald Trump told U.S. lawmakers on Sunday he was prepared to strike Iran “in a disproportionate manner” if it retaliates against any U.S. target, as the nations traded threats.
Bullion is having a roaring start to 2020 and building on the largest annual gain in almost a decade, which was driven by a weaker dollar, lower real rates and the trade war’s effects in curbing global growth. The widening fallout from the drone strike on Soleimani is threatening to escalate, denting risk sentiment and sending investors to havens, driving gold’s current rally.
Spot bullion climbed as much as 2.3% to $1,588.13 an ounce, the highest level since April 2013, and traded at $1,569.90 as of 8:50 a.m. in Singapore, while futures gained as much as 2.5% to $1,590.90. Palladium jumped as much as 1.2% to $2,013.90 an ounce, a fresh record, while silver and platinum also rose.
Source : Bloomberg